|Fed should trim its balance sheet slowly|
|Brexit to be litmus test of future of...|
Experts Say: 2017-04-21
It’s premature to talk exit strategy
The Bank of Japan will continue with very accommodative monetary policy and maintain the current pace of asset purchases for some time, Governor Haruhiko Kuroda said in an interview.
While Japan's economy is doing better than thought a few months ago, the inflation rate is still quite sluggish, Kuroda said in New York on Thursday.
"I don't think our monetary policy is constrained by the fact that we have acquired 40 percent of JGBs already, or our balance sheet is about 80 percent of GDP, which is certainly large compared with other central banks,” Kuroda said.“We have acquired about 40 percent of JGBs outstanding. But that means that 60 percent is still in the market."
“It's premature to discuss in an exact way about exit strategy,” Kuroda claimed. While the Fed's strategy of keeping the balance sheet unchanged as it raises rates is one way to exit, "whether we would follow the Fed example or not depends on the situation when we decide exit strategy."
The BOJ is said to be considering a small reduction in its inflation forecast, people familiar with the BOJ's discussions said earlier this week. "The target is 2 percent - we're still around 0 percent. So it's a long way to go,” Kuroda added.
It should be noted that the topic of the sharp growth in the assets volume on the balance sheets of the central banks and their further actions has attracted increasing attention. Federal Reserve officials at one of the last meetings have already noted that the US regulator will begin to reduce its assets balance this year.
At the same time, some representatives of the Federal Reserve say that the Central Bank of developed countries will use large-scale money printing programs to buy up assets in the future.
This was previously announced by Eric Rosengren, the head of the Federal Reserve Bank of Boston, who payed attention to the huge amount of assets that central banks of developed countries have bought to counter the effects of the financial crisis.
Commodities strategist, investor
Economist of Royal Bank of Scotland Group Plc in London
Economist at Moody's Analytics in Sydney
Spokesman of China's Commerce Ministry
Founder and Managing director of Pacific Investment Management Co.
SIA President and CEO
President of the European Central Bank
Managing director of Petromatrix GmbH in Zug, Switzerland
Equity strategist at Goldman Sachs
U.S. Federal Reserve Chairman
The European Commissioner for Employment and Social Affairs
The Finance Minister of Japan
Bank of Greece Governor
President and CEO of Federal Reserve Bank of Atlanta
Deutsche Bank's spokeswoman
Head of Commodity Research, UBS Wealth Management Research
IMF Managing Director
Head of the Sovereign Ratings Group for Europe at Standard and Poor's
Governor of the Bank of Japan (BOJ)
Vice President of Single-Family Research and Policy Development for the Mortgage Bankers Association (MBA)
US Secretary of Commerce
Chief sovereign ratings officer at Standards & Poor
Global head of currency strategy at HSBC Holdings Plc.
Investor, founder and director of Marc Faber Ltd. in Hong Kong
Co-head of the Trading Division at Goldman Sachs Group Inc.